BUSINESS STRATEGIZING: MODERN METHODOLOGICAL APPROACHES AND PRACTICE

Author
, professor, Kharkiv, Pushinska, 77

In heading

 Economic theory;

Signed print

 25.03.2025

Issues number

 2025 - № 1 (60)

Page

 6-27

Type of articles

 Scientific article

Code UDK

 334.722.01:005.21

ISSN print

 2411-5584

Abstract

 Problem setting. Strategic management is currently represented by several scientific schools: the design school, the planning school, the positioning school, the entrepreneurship school, the cognitive school, the learning school, the power school, the cultural school, the environmental school, the structural school. Each of these schools adheres to its arguments, which are a source of scientific disputes. At the same time, modern theory and practice of strategizing are faced with constant changes in the business environment, numerous restrictions on the activities of firms, uncertainty and unpredictability of its results.
Accordingly, researchers are updating their scientific approaches and strategizing methodology.
Recent research and publication analysis. The spectrum of recent research on strategizing issues is quite diverse. Scientists study the features of strategy development and implementation in the VUCA world. They link the essence of strategy with predicting the future. They propose fundamentally new approaches to forming strategies for ecosystems, digital companies, and “artificial intelligence factories”. They research the social aspects of strategy related to personal and systemic biases in strategizing. They develop a new methodological direction “strategy as practice”. The publications of P. F. Drucker, T. Zenger, A. G. Lafley and R. L. Martin; D. B. Yoffie and M. A. Cusumano, R. Adner, S. Gupta, P. Leinwand and C. Mainardi, and other authors are worthy of attention.
The purpose of the article is to generalize the main methodological approaches formed in recent years to justify the essence of strategy and business strategizing (organizational activities).
Paper main body. The author analyzes several definitions of strategy, which have both their supporters and opponents, but are important for the practice of business management. These are:
1) strategy as a way of implementing business theory;
2) strategy as a perspective that involves substantiating the strategic guidelines for the development of the firm – its mission, vision and goals, and researching the strategic environment of the firm;
3) strategy as a trajectory of the firm’s development;
4) strategy as a value proposition (value) of the firm, supported by its key competencies;
5) strategy as a plan;
6) strategy as a practice;
7) strategy as a hierarchy.
Conclusions. Generalization of theoretical approaches to understanding the essence of strategies should contribute to improving the practice of strategizing.
First, in strategic management, the relevance of developing firms’ own corporate theories of business is increasing, which in the long term become the basis of competitive advantages and competitiveness of firms.
Secondly, while developing a firm’s strategy, a systemic view of business is needed using each of the modern methodological approaches to strategizing.
Thirdly, for the theory and practice of strategic management it is important to understand its features in conditions of uncertainty and unpredictability. Uncertainty creates risks, makes it impossible to assess the future development of events, changes the logic of strategizing, forces the organization to review its strategies and mechanisms for their implementation. The main tasks of managers are to achieve strategic flexibility and ensure the firm’s strategic adaptability to changes in the business environment.
Fourthly, tactical issues of strategizing, in particular, methods of assessing the practical actions of managers require further research. The assessment process should occur continuously, at all levels of the firm, using integral indicators.
Fifth, Ukrainian entrepreneurs are currently working in the conditions of the Russian-Ukrainian war and it would seem situational business management should come to the fore. But the need to ensure the sustainable functioning of enterprises stimulates the development of strategic management. Many entrepreneurs pay attention to the experience of the Ukrainian military, in particular, to a new understanding of the essence of strategizing and a qualitatively new management model based on the doctrine of distributed leadership.
Short abstract for an article
Abstract. The author of the article offers a generalization of modern methodological approaches to determining the essence of strategy and business strategizing in the conditions of constant changes in the business environment, numerous limitations, uncertainty and unpredictability of the results of organizational activity. The following definitions of strategy are analyzed in the article: strategy as a way of implementing business theory; strategy as a perspective; strategy as a trajectory; strategy as a value proposition (value) of the firm; strategy as a plan; strategy as practice; strategy as a hierarchy. The role of tactics in the implementation of the firm’s strategy is revealed.

Keywords

 strategy, strategizing, business theory, strategic trajectory, value proposition (value) of the firm, firm competencies, hierarchy of strategy, tactics.

Reviewer

External reviewer

Article in PDF

 Economic Theory and Law, 1-2025-6-27

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Code DOI

 https://doi.org/10.31359/2411-5584-2025-60-1-6

This post is also available in: Ukrainian

25.03.2025